As the implementation of HMRC’s Making Tax Digital initiative looms, whereby all VAT-registered companies with a taxable turnover above the VAT threshold are required to submit their VAT return digitally from 1 April 2019, you may be asking, does our system comply?
PS Financials is here and ready to support you, developing a compatible VAT product for organisations to make simple tax submissions in time each year. Not only is this applicable to companies, but there are a number of multi-academy trusts (MATs) who, with the inclusion of Teaching Schools and Secondary Academies, will easily have output VAT (Sales) which exceed the threshold.
Part of the process of adhering to MTD requires records to be maintained digitally and for VAT figures to be submitted to HMRC via specialised APIs. Whilst this seems straight forward, under the new procedure, HMRC will not permit data being re-entered from one system to another, meaning in some cases, bookkeeping software cannot be used. Additionally, HMRC’s current online portal, which is used for submitting VAT returns, will not be MTD compliant.
To resolve the issue of rekeying data from one system to another, a type of ‘bridging software’ which is able to import data from various sources and submit them to HMRC is required. The new module has been provisionally approved by HMRC and is currently undergoing quality testing, ready for release in early 2019. This means that, following the completion of the module’s testing period, PS Financials will be listed as compliant software. As a result, companies with the system will be able to file their tax returns directly through their financial management software, making the process as simple as possible. The module within the software enables data required for the VAT submission to be imported quickly and easily, ensuring users comply with Making Tax Digital.
Being a fully integrated solution, you can easily obtain the data you require for submissions, as well as being able to track and view data submitted. You can also ensure a high level of data accuracy through the integrated system with no data re-entry required.
To find out more about PS Financials’ MTD compliant software, please contact email@example.com
You can check if your software provider is listed an MTD compliant system here.